Minister, Ladies and Gentlemen,

In 1903, the Norwegian writer Knut Hamsun visited Moscow and was deeply impressed by what he saw. The spires and cupolas, the solemn and exotic atmosphere were all different from his home country.

Norway and Russia share a long history of trade and business relations.

We have known each other well for centuries. Yet, still, Hamsun’s words of an exotic and different atmosphere ring true.

That is why we meet today: To explore further our many traditions, yet to learn more about our differences.

Our current relations are dynamic. Russia is an interesting market to Norwegian industries, both in terms of its size and in terms of its proximity.

I will go further. Russia is potentially the most interesting new market in Europe to Norwegian businesses.

Following 1998, when Russia was hit by economic crisis, confidence in the Russian market was shaken.

During my visit this week, I am impressed to see how quickly the Russian economy has recovered.

Last summer, the Russian government launched a new economic programme. It contains schemes for all the reforms necessary to generate a true market economy. Reforming an economy as large as the Russian one is a true challenge and will take time.

I support President Putin and my colleague Prime Minister Kasianov’s efforts to keep necessary reforms high on the agenda.

True reform is the foundation not only for increased Norwegian business investments, but for a sustained increase in welfare for the Russian people.

I have confidence in the Russian reform process. Judging from the economic figures, so has the market.

I note with satisfaction that our bilateral trade is expanding steadily. Last year, our trade balance amounted to nearly one billion US dollars. Nearly 80 per cent was Russian exports to Norway. My country is buying more products from Russia than ever before.

This Technology Forum will focus on two specific sectors: Information technology, and energy.

There is a clear scope for further co-operation in the key field of information technology. Our ambition is to support new networks between Norwegian companies and experienced Russian counterparts.

Norwegian companies such as Telenor and NERA have worked in Russia for a number of years. Telenor has made substantial investments in several Russian companies.

The recent 220 million US dollar investment in the Russian telecommunications company Vimpelcom is the largest Norwegian investment in Russia ever.

Such an investment shows more than many words confidence in the Russian economy.

In order to support these closer relations in telecommunications we have negotiated a bilateral framework agreement on co-operation in the fields of post and telecommunications. I will later this morning witness the signing of the agreement with Minister German Gref.

Norway and Russia are key European oil and gas producers and exporters.

Second only to Saudi Arabia, our countries are the second largest oil exporters in the world.

Our two countries are the largest exporters of natural gas to Europe.

Even as commercial competitors, Norway and Russia have common interest in the development of stable European energy markets.

In the Barents Sea we know of great reserves of oil and gas. They are only waiting to be explored.

Russia is an old producer of petroleum going back to the second half of the 19 ^th> Century.

Norway is a young producer of petroleum dating back no more than some 30 years.

Over this period of time, Norway has developed two competent and competitive oil companies. We have developed a significant supply industry. Many of these companies are represented here today.

As a former minister of industry and energy I know them well.

I can testify to their professionalism.

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While many companies report that they intend to invest in Russia, some are reluctant.

The concerns need to be addressed.

The concerns are often linked to a predictable investment climate.

The lack of such a predictable environment is of major concern.

Markets require stable, transparent and non-discriminatory regulatory regimes.

Today, as our companies see it, the challenge is to make the newly-established legal and financial framework in Russia work in a satisfactory manner.

Norway strongly supports Russia’s membership in the World Trade Organisation. Membership will in a major way contribute to the integration of Russia in the international economy. This will impact on good business relations.

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This Norwegian-Russian Technology Forum will build on what has been achieved to generate new growth.

This is, at the end of the day, what will enhance the welfare and prosperity of the peoples of Norway and Russia.

Thank you for your attention.